Fed's Dudley (dove, FOMC voter): Coming rate hike cycle will be slow and gradual; reverse repo tests have gone quite well - comments in NY - Should be a while between the end of the taper and the beginning of rate hikes. - Reiterates timing of initial rate hikes entirely depends on the economy. - New monetary policy tools may be merely transitional, not permanent. - Not ready to say definitively what the future rate policy regime will look like. - After a poor start, economy will return to decent levels of growth. - Headwinds to growth have been abating however growth continues to disappoint. - Inflation should keep drifting higher over the course of 2014, want inflation to average 2% over time. - 2% inflation is not a ceiling